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ECONOMY AND ENVIRONMENT - Coggle Diagram
ECONOMY AND ENVIRONMENT
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The economy
The economy is the correct and prudent administration of goods. If it is about the goods of a nation, we refer to the National Economy of that country.
Economics is the science of scarcity. No company, no country, no person has unlimited resources.
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History of Economics
Hunger gave rise to the first measures of the state in the economic sphere. In the Middle Ages the prevailing scarcity forced the municipalities to regulate the quantity of food, avoiding hoarding and monitoring prices.
As we can see, it can be said that the economy was born out of hunger. Needs were exceeding resources, thus making the practices that developed appear what we know today as economics.
The Problem of Scarcity
The word "scarce" is closely associated with the concept of "limited" or "economic" as opposed to unlimited or free. Scarcity is the central problem of every society.
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